Esterholdt v. PacifiCorp
2013 WY 64, 301 P.3d 1086, 2013 Wyo. LEXIS 68 (2013)
Premium Feature
Subscribe to Lexplug to listen to the Case Podcast.
Rule of Law:
Under the Wyoming Marketable Title Act, a recorded conveyance that is otherwise a 'wild deed' because it was granted by a party with no record interest in the property can serve as a valid 'root of title' to establish marketable record title after 40 years, thereby extinguishing prior valid claims.
Facts:
- In 1946, Continental Live Stock Company conveyed certain property to J.A. Reed in his personal capacity.
- On March 1, 1967, J.A. Reed granted a Pole Line Easement across the property to PacifiCorp's predecessor, Utah Power & Light Company.
- When granting the easement, Reed signed in his capacity as President of Continental Live Stock Company, which at that time had no ownership interest in the property.
- The easement was recorded on July 21, 1967.
- In 1968, Reed conveyed the property to his daughter, Julianne Reed Biggane.
- In 2006, the Biggane Trust transferred the property to the Esterholdts.
Procedural Posture:
- The Esterholdts filed an action in a Wyoming district court against PacifiCorp, seeking a declaration that PacifiCorp's easement was invalid.
- The district court granted partial summary judgment in favor of PacifiCorp, ruling that the Wyoming Marketable Title Act validated the easement.
- The Esterholdts (appellants) appealed the district court's summary judgment ruling to the Supreme Court of Wyoming, with PacifiCorp as the appellee.
Premium Content
Subscribe to Lexplug to view the complete brief
You're viewing a preview with Rule of Law, Facts, and Procedural Posture
Issue:
Does a recorded easement granted by a party with no record title to the underlying property (a 'wild deed') constitute a valid 'root of title' under the Wyoming Marketable Title Act, thereby extinguishing the landowner's prior, valid claim?
Opinions:
Majority - Justice Voigt
Yes. A recorded easement granted by a party with no record title constitutes a valid 'root of title' under the Wyoming Marketable Title Act (the Act), extinguishing the landowner's prior, valid claim. The Act's purpose is to simplify land title transactions by allowing reliance on a 40-year record chain of title. The statutory definition of 'root of title' includes any conveyance 'purporting to create the interest claimed,' which does not require the grantor to have had actual valid title. The 1967 easement purported to create an interest and was recorded more than 40 years ago, establishing it as PacifiCorp's root of title. Interpreting the Act to exclude wild deeds would defeat its entire purpose, which is to cure such defects over time. Furthermore, the fact that the grantor had no title is not an 'inherent defect' under the Act because it is not apparent on the face of the easement document itself; it can only be discovered by examining records that predate the root of title, the very practice the Act seeks to make unnecessary.
Analysis:
This decision solidifies the power of Marketable Title Acts to cure significant title defects over time, prioritizing the legislative goal of transactional certainty over the preservation of ancient property interests. It marks a significant departure from the common law principle that a grantor cannot convey an interest they do not possess. The ruling serves as a caution to landowners that their interests can be extinguished by a 'wild deed' if they fail to periodically re-record their claims as prescribed by the Act. This holding strengthens the finality of title searches based on the 40-year look-back period, potentially at the expense of unwary property owners whose valid claims predate a defective 'root of title'.
